Timeline for Why (neoclassical) economic models have no profits, unlike the real world?
Current License: CC BY-SA 3.0
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| Mar 25, 2017 at 9:45 | history | edited | Giskard | CC BY-SA 3.0 |
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| Feb 15, 2015 at 19:22 | comment | added | luchonacho | I get the point of profits and rents over the opportunity cost but that is exactly what I mean. It is very likely that the opportunity cost is endogenously determined and so it is interesting to model (e.g. think of Marx's rate of profit). Why does it need to be obscured/hidden behind "capital", which usually refers to physical capital, no about ownership of equity. In fact, people usually don't own the assembly lines, the aircrafts, the labs, etc, but the shares of companies. I have seen models of ownership, specially in macro, my area. I'm just puzzled why is is not a mainstream thing. | |
| Feb 14, 2015 at 23:17 | comment | added | jmbejara | Certainly. But I'd also like to point out that it's not something that should be taken for granted. | |
| Feb 14, 2015 at 23:16 | comment | added | FooBar | If you change to some firms to make profits on the long run, I'm pretty certain that you can show that (long run being over the span of data available). I don't think he meant all firms, as obviously many fail and exit. | |
| Feb 14, 2015 at 23:07 | history | answered | jmbejara | CC BY-SA 3.0 |